ATO credit card payment ban delayed after business pressure

Summarised from 2 outlets · Updated 9 Oct, 02:48 · Archive

Australia's tax office will delay its planned ban on credit card payments for tax bills following criticism from small businesses.

The Australian Tax Office will delay its planned ban on credit card payments for tax bills until 30 June 2027, more than six months later than originally announced. Treasurer Jim Chalmers announced the decision on Friday following sustained criticism from small business groups. The tax office will continue to accept credit card payments via third parties and other methods including debit cards and bank transfers during the extended period.

The ATO commissioner, Rob Heferen, announced the ban in early October, citing costs of almost $200 million per year in merchant fees that the tax office said it could not absorb. The announcement came after the Reserve Bank implemented a ban on credit card surcharges. About 5 per cent of small businesses use credit card payments for tax bills, often as a cashflow management tool.

Chalmers said the government had taken business concerns 'seriously' and that the extra funding would give the ATO 'more time' to consult with businesses. He emphasised that 'Australian small businesses have said the ATO's announced time frame was inadequate'. The government announced the funding despite the ATO's independent status, which normally prevents political pressure on the tax commissioner's decisions.

How it is being reported

• Treasurer Jim Chalmers backflips on ATO credit card payment ban after small business outcryTreasurer Jim Chalmers has confirmed a planned ban on credit card payments to the Australian Taxation Office will be delayed following backlash from small businesses.Daily Mail · 9 Oct, 02:37
• Jim Chalmers delays ATO’s controversial ban on credit card payments following business outcryTreasurer earmarks funds for year-long transition period for tax office, delaying ban’s 30 November start date A controversial credit card ban for payments on tax bills will be delayed by up to a year after extra funding was announced for the Australian Tax Office. Treasurer Jim Chalmers announced the move on Friday following backlash from small businesses in response to the ATO’s plan. Continue reading...Guardian World · 9 Oct, 01:45

In this story: Jim Chalmers · Rob Heferen · Australian Tax Office · Reserve Bank · Australia

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